The ATO has also released their Practical Compliance Guideline
2023/2 which sets out the approach of the Commissioner to
businesses that classify their workers as either employees or
independent contractors. As such, the guidelines sets out how the
Commissioner allocates audit compliance resources based on the risk
structure as seen below and are worthy of consideration.
Businesses are also encouraged to assess their risk rating and
if applicable, adjust their hiring practices. As seen below, this
may include ensuring that:
- both parties intended their relationship to be classified in a
specific manner, either An independent contract or employee
relationship;
- there is a comprehensive written agreement between the worker
and employer;
